Safety is a luxury in the domain of e-currencies. There have been countless cases of exchange hacks, liquidity pool breaches, rug pull practices on the part of blockchain project founders, and even banal wallet hacks. All of these factors have a way of emerging to the surface and floating into the headlines of media outlets, which salivate not only on the story, but also on the idiotic behavior of the users who allowed such breaches to take place. Many media outlets do not pass up the opportunity to even gloat about these users, seeing them as outright dumb for engaging in digital currencies in the first place.
There is, of course, a grain of truth to what the media outlets state, since many of the payment methods that people resort to for conducting their exchange operations in the given industry can hardly be deemed secure or safe. Shockingly enough, a huge percentage of users refrain from checking the service they are using for safety, but they do not even bother asking other users about their experiences, or even reading reviews. What’s worse, many users do not know that making transactions on platforms dedicated to trading is far from an ideal move, since some of the given platforms are routinely hacked and have lost millions of user funds. These factors, combined with the lack of basic knowledge about account security, make the use of e-currencies a very risky business. Unlike its fiat counterpart, digital currency channels are monitored by hackers who are only waiting for some vulnerability to exploit.
In light of the large-scale selling of cryptocurrencies amidst the ongoing global conflict and economic downturn, some market players are adamant in their belief that the time is ripe to hoard up some crypto and start waiting for the next bull run. Though economics and market behavior dictate that every slump is inevitably followed by an increase in market activity after the situation levels out, there is absolutely no telling when that will happen. The global situation is not making it easy to guess when an economic upturn can be expected, considering that the European economy is entering a recession and millions of Europeans are suffering from poverty. It is necessary to admit that current trends are not indicating a return to high interest in e-currencies any time soon. However, that is not leaving many users indifferent and means they have to know what is the safest way to buy cryptocurrency.
What Is the Safest Way to Buy Cryptocurrency?
Privacy can often be pinpointed as the most important criterion for selecting the means that will be used for safeguarding the digital asset in question. If privacy is ensured, the hackers will not be able to gain access to the credentials used for accessing the repository that the assets of value could be stored on. Many of the holders of e-currencies believe, rather erroneously, that exchange wallets are ideal environments for storing crypto assets in perfect safety. Nothing can be farther from the truth, since exchange wallets are stored on a centralized server – one that experienced and determined malignant entities can gain access to. The counter-option of cold wallets comes at a price of convenience by nature, which means that hot wallets provided by external services remain the most secure repository, however all wallets are divided into custodial or non-custodial variants.
The whole affair of acquiring your first crypto asset in a secure manner starts with the wallet, since it is the access point into blockchain. Selecting the right repository app stands as the separating barrier between complete security and a low entry threshold for hackers. The first step is always selecting a non-custodial repository. In this way, the users will be in complete control of their private keys and credentials. Next, the wallet should, preferably, be a hardware one with limited access to the global network, so the hackers cannot access it at any time. Finally, the account should be secured with 2-Factor Authentication and other layers that will require more devices in the chain of custody hackers will find extremely challenging to access simultaneously.
The moment all security measures have been put in place, users should select the safest way to buy cryptocurrency. Traditionally, Binance is the go-to solution thanks to its extensive marketing and reputation. They have a good reputation in terms of security and offer a seamless purchase experience. In addition, they have low commissions. Though these exchanges are centralized, they have the benefit of restoring passwords in case users lose them. Another safe option is the decentralized platform. But users willing to go that route should be advised that such exchanges have their security ensured only by the blockchain itself.
Key Takeaways
Everything starts with personal security and the user’s own attitude towards keeping their assets safe. Safeguarding a password in a safe place is not enough, since new and additional security layers like one-time codes and other types of active defense systems are readily accessible. But when it comes to buying up some crypto in a safe and secure environment, the peer-to-peer option can guarantee trade processing via an escrow service.
